Friday, January 27, 2023

Dividend Increase - Canadian National Railway Company (CNR)


Tuesday, January 24th the Board of Directors of Canadian National Railway Company (CNR) announced a quarterly dividend increase of from C$ 0.7325 to C$ 0.79 per share that’s payable March 31, 2023 to holders of record March 10, 2023. This represents a 7.85% increase over the last quarterly dividend.

In addition, CNR has approved the repurchase of its shares under a new normal course issuer bid (Bid). The Bid, in the range of C$4 billion, permits CN to purchase, for cancellation, over a 12-month period up to 32 million common shares, representing 4.8% of the 671,253,977 common shares issued and outstanding of the Company on January 18, 2023.

This is the 27th consecutive year of dividend increases.

With current price C$ 157.91 (yesterday's close), this raise brings their dividend yield to 2.00%.

CNR is a member of Canadian Dividend All Star List with a 27 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 19.1, 10.9, 12.2 and 14.6 (Canadian Dividend All-Star List)

Since I own 20 shares of CNR, this will increase my portfolio's projected annual net dividend income by $ 2.56.

I was expecting an increase of around 10%, so this was was a slight disappointment for me.

This is the second dividend increase I've received from Canadian National Railway Company since initiating a position in December 2021. During this period, the dividend has risen very nicely from C$0.615 to C$0.79, or 28.5%.

This increase raises my YOC to 2.05%.

Summary of 2022 Dividend Increases / Cuts

Click here to see my portfolio holdings.

You can follow the development of my dividends here.

Full Disclosure: Long CNR

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